What does Health Savings Account mean? Read on to discover the definition & meaning of the term Health Savings Account - to help you better understand the language used in insurance policies.
Health Savings Account
A health savings account (HSA) is an account set up for individuals covered under a high-deductible health plan (HDHP). Intended to help pay for medical expenses not covered by the latter, it also offers three tax advantages: deposits are tax deductible, interest earned is tax-free, and withdrawals are also tax-free, provided they are put toward qualified medical expenses.
We hope the you have a better understanding of the meaning of Health Savings Account.